si Shares as donated capital when subsequently sold will increase the shareholder's equity by the total par value of the donated capital. S2 When shares are acquired as treasury shares, these will reduce the number of issued shares, a. Both statements are true b. Both statements are false c. One statement is true, and the other one is false

Statement 1: Treasury shares are a company’s own shares that have been reacquired and retired.         Statement 2: The cost method records all transactions in treasury shares at their cost and reports the treasury shares as a deduction from ordinary shares. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect.

1. Subscribed Share Capital shall be presented as 2. Treasury shares are an entity’s own shares that were previously issued but are subsequently reacquired but not retired. Treasury shares are favorably accounted for 3. Which of the following is the second priority in the valuation of shares issued for services received? a. Par Value of shares b. Billings on services c, FV of services d. FV of shares

If shares are issued for a non-cash asset, the share should be recorded at?    a. Zero b. Fair market value c. Par or stated value d. Cost

When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders equity under each of the following methods?

1. What is the accounting for treasury share transactions? a. On repurchase or re-issuance of previously purchased own shares, no gain or loss is recognized. b. Treasury shares are accounted for as financial assets. c. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price. d. On repurchase of treasury shares, a gain or loss is recognized equal to the difference between the amount at which the shares were issued and the repurchase price for the shares. . 2.  If a no-par value share is issued... a. The value of each share is automatically ₱5. b. The corporation is automatically in violation of its state charter. c. There is no legal capital. d. The entire proceeds is considered as legal capital. . 3 Which of the following statements relating to bonds is incorrect? a. None of the choices b. A bond’s face value is the amount the issuer must pay…

(I) A share of common stock in a firm represents an ownership interest in that firm. (II) Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders, but after that of bondholders. A. (I) is true, (II) false B. (I) is false, (II) true C. Both are true D. Both are false

Which of the following is a current liability? a. Preferred dividends in arrears. b. A dividend payable in the form of additional shares of stock. c. A cash dividend payable to preferred stockholders. d. All of these answers are correct.

H1. Account

Match each description with the characteristic of preferred stock that it best describes. A. Cumulative B. Noncumulative C. Nonparticipating D. Participating 1. Receives current and all past dividends before common stockholders receive any dividends. 2. Receives dividends exceeding the stated rate under certain conditions. 3. Not entitled to receive dividends in excess of the stated rate. 4. Loses any dividends that are not declared in the current year.